Operating profit, which Buffett sees as a better indicator of a company’s performance, rose 39 percent year over year to $28 billion in the quarter. The performance of reinsurance companies and BNSF’s rail division in the conglomerate’s portfolio offset the loss of insurer Geico, where a shortage of auto parts and higher vehicle prices increased claims losses.
Berkshire has slowed its buyback of its own shares. It set aside one billion dollars for buybacks in the past quarter, a total of $4.2 billion so far this year.
The mixed concern invested over 6.1 billion dollars in other shares in the second quarter. That’s down from $51.1 billion in the first quarter, when it acquired significant stakes in oil companies Chevron and Occidental Petroleum.
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In the past quarter, shares of Berkshire’s top three holdings, Apple, Bank of America and American Express, each fell more than 21 percent. Buffett always advises shareholders to ignore quarterly investment swings. He notes that Berkshire will profit if the stock rises over time.
For example, in 2020, the conglomerate lost almost $50 billion in the first quarter due to the impact of the covid-19 disease pandemic on the stock markets, but earned $42.5 billion for the full year.
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The company’s shares have outperformed the broader US market this year. They fell by two percent, while the Standard & Poor’s 500 index weakened by about 13 percent.
Ninety-one-year-old Buffett is one of the richest people in the world, and thanks to his successful investments, he earned the nickname The Oracle of Omaha. According to the Bloomberg Billionaires Index, Buffett is the eighth richest person in the world with a fortune worth around $102 billion.
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